PHILADELPHIA--(BUSINESS WIRE)--
Hersha Hospitality Trust (NYSE:HT) (“Hersha” or the “Company”), owner of upscale hotels in urban gateway markets, today announced that its Board of Trustees authorized a new share repurchase program of up to $100 million of the Company’s outstanding common shares. This new program will commence upon completion of the Company’s existing $100 million share repurchase program, of which approximately $23.1 million remains available for repurchases of the Company’s outstanding common shares through the end of 2016. The Company expects to complete the new repurchase program prior to December 31, 2017, unless extended by the Board of Trustees.
“The Company is on track to successfully dispose over $825 million of stabilized hotels this year. Our ability to execute these sales has provided the Company tremendous financial flexibility to acquire assets, de-lever and undertake additional share repurchases. The new $100 million share repurchase program underscores confidence in our young, differentiated and high-quality hotel portfolio, in addition to driving returns to our shareholders. We believe opportunistic share buybacks are an attractive use of available capital and a driver of share value when the share price is temporarily dislocated and at a material discount to our net asset value. Since 2014, we have repurchased $192.2 million of our common shares, representing approximately 20% of common shares outstanding. We intend to continue opportunistic share repurchases throughout the year to take advantage of capital market dislocations, remaining steadfast to our sustained and unique value creation philosophy and commitment to driving total shareholder returns,” stated Jay H. Shah, Hersha’s Chief Executive Officer.
The shares may be repurchased from time to time in open market transactions at prevailing market prices, in privately negotiated transactions or by other means in accordance with federal securities laws. The actual timing, number and value of shares repurchased under the program will be determined by management at its discretion and will depend on a number of factors, including the market price of the Company’s common shares and general market and economic conditions, applicable legal requirements, compliance with the terms of the Company’s outstanding indebtedness and the availability of capital for repurchases.
Year-to-date as of September 30, 2016, the Company has repurchased approximately 2.6 million common shares totaling $49.0 million, representing 5.9% of common shares outstanding.
Hersha Hospitality Trust (HT) is a self-advised real estate investment trust in the hospitality sector, which owns and operates high quality upscale hotels in urban gateway markets. The Company's 55 hotels totaling 8,799 rooms are located in New York, Boston, Philadelphia, Washington, DC, Miami and select markets on the West Coast. The Company's shares are traded on The New York Stock Exchange under the ticker “HT”.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, and, as such, may involve known and unknown risks, uncertainties and other factors that may cause the actual results or performance to differ from those reflected in the forward-looking statement. The risks and uncertainties associated with forward-looking information in this release include, but are not limited to, factors that are beyond the Company’s control, including the Company’s ability to identify and execute on property acquisitions and dispositions on attractive terms, if at all, the Company’s ability to reduce its leverage, the Company’s ability to effect share repurchases on the timing it expects and the other factors identified in the Company’s Annual Report, on Form 10-K for the year ended December 31, 2015 and subsequent filings with the U.S. Securities Exchange Commission. Including the information under the heading “Risk Factors”.
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